Starbucks - The Strategy Lesson

#starbucks  - The strategy Lesson.

Starbucks was founded in 1971 by 3 friends (not including Schultz), selling dark roasted coffee.

In 1981, Schultz joined the company and started his italian tour of studying the coffee bar culture there.

Schultz was awed by the grace and flair of Italian coffee bars, where expensive coffee was served in a relaxed social setting.

In contrast, coffee culture in US was comprised of cheap, bland coffee.

Post his trip, he made a hypothesis - The Italian espresso experience could be re-created in America and the public would embrace it.

He then started testing this by setting up the first espresso bar in seattle.

He realized that American preferred table chairs vs standing bars in Italy. He changed the furniture.

He realized that they wanted coffee on the move and not in fancy cups unlike italy. So he introduced paper cups.

And many more such variations while doing hypothesis testing and refining ideas basis results; its what it is today-

 An american original.

#Strategy is not just a static plan; its much closely knitted to the ground actions warranting perennial refinement and tweaks.

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I write regularly on topics linked to marketing/consumer and habits/productivity. 

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Strategy is God?

Strategy is God.

It pervades everywhere.

From man on the moon strategy to how to tie shoe laces strategy.

Basic strategy. Sophisticated strategy. Winning strategy. Losing strategy. #Marketing strategy. Sales strategy. HR strategy.

‘strategy’ derives from the Greek strategia, = ability to employ available resources to win a military conflict.

Simply put, strategy is a cohesive response (analyses, concepts, arguments, policies and actions) to an important challenge.

Not a standalone decision.

Not a goal.

It’s important to distinguish and use the word. 

Richard Rumelt in his book, Good Strategy Bad Strategy; talks about -

#Strategy = Diagnosis + Guiding Policy + coherent action

Diagnosis = Identification of problems/obstacles

Guiding policy = Specific approach selected to solve problems

Coherent action = detailed how to ( policy, resources,actions) to carry out Guiding policy.

Do the below sound okay as strategy?

-Our strategy is to grow 10X in 3 years. 

-Our game strategy today is to go out there and score!

#execution